Morocco emerges as the world’s cheapest car manufacturing hub

Morocco has become the world’s most cost-efficient car manufacturing base, with labour costs averaging just $106 per vehicle, according to global consultancy Oliver Wyman. That figure is well below rivals such as Romania ($273), Mexico ($305), and China ($597). But low wages are not the only draw: modern factories, efficient production lines, and integrated supply chains help reduce complexity and assembly time.

French carmakers Renault and Stellantis have expanded operations in Tangier and Kenitra, drawn by Morocco’s business-friendly environment and proximity to European markets. The country now produces around 700,000 vehicles annually, Africa’s highest output, with exports topping $14 billion, according to the Associated Press.

Reuters notes that infrastructure investments—including the Tanger Med port and Al-Boraq high-speed rail—have reinforced Morocco’s appeal. As global carmakers grapple with rising energy costs and weaker demand for electric vehicles, Morocco’s cost stability and strategic location make it an increasingly attractive industrial base.